Northwestern Mutual Sells Russell for $2.7 Billion

The completion of the sale comes nearly six months after the
London Stock Exchange Group (LSEG) announced its intention to acquire Russell from Northwestern and minority stockholders. The firms
report the comprehensive review of Russell’s investment management business is “making
good progress and is on track to be completed early in 2015.”

“Today marks a significant step for the [London Stock Exchange
Group],” said Xavier Rolet, chief executive
of LSEG, about the completion of the acquisition of Russell. “Russell
significantly enhances LSEG’s presence in the U.S., the world’s largest global
financial services market, further expanding our global footprint and
diversifying our customer and product base.”

Rolet adds that LSEG is “delighted today to welcome Russell
to the Group, and we are looking forward to working with new colleagues, new
customers and new partners around the world.”

LSEG owns the FTSE Group, the operator of indexes
including the FTSE 100, which tracks the top 100 stocks traded in London. The
deal with Northwestern Mutual brings together $5.2 trillion of assets
benchmarked to Russell, according to the firms, and an estimated $4 trillion of
equities benchmarked to FTSE. Russell Investment Management has $256 billion of
global assets under management and $2.4 trillion of assets under
advisement through its consulting division.

For the London Stock Exchange Group, the deal will
accelerate its diversification strategy and enhance its information services
offering, particularly in the United States, the firm says. The deal also allows LSEG to
further capitalize on key industry trends, such as growth in multi-asset
solutions and passive investment strategies. According to LSEG, retention plans
will be put in place for key Russell employees to drive performance.

“Russell has been a good investment for us,” said
John Schlifske, chairman and CEO of Northwestern Mutual. “Russell’s
operating results have made significant contributions to our financial results
over the years. When you look at this sale price and the income produced for us
since we bought Russell in 1999, you get a rate of return well in excess of
equity indices over that period.”